Developer KOP sails into yacht business

Source : Straits Times – 29 Sep 2009

PROPERTY developer KOP Group is moving into the yacht business with the launch of a $48 million joint venture that is poised to sell and manage luxury cruisers.

The new business, Princess Yachts Asia, has secured the exclusive distribution rights for British luxury yacht brand Princess Yachts in Singapore and most of China.

KOP and its partner, China conglomerate Reignwood Group, whose businesses include property development, are investing the money over the next 12 months. KOP holds a 40 per cent stake, and Reignwood 60 per cent.

Initially, the business is offering four Princess yachts in Singapore for sale or lease.

KOP has set up yacht management service company Aqua Voyage to work alongside Princess Yachts Asia and offer private cruises to destinations across Asia. It will also help yacht owners lease out their boats on the charter market.

KOP’s chief executive officer, Ms Ong Chih Ching, said yesterday that the group’s foray into the leisure marine sector was based on what it saw as the huge growth potential in Singapore.

‘As Singapore’s status as a luxury lifestyle destination grows… we believe there’s an opportunity for us to elevate Singapore as a global leisure boat and luxury lifestyle hub,’ she said.

The number of marinas in Singapore has grown steadily over the years and now includes the Marina at Keppel Bay, One Degree 15 Marina Club on Sentosa island, the Republic of Singapore Yacht Club on the West Coast and Raffles Marina at Tuas.

KOP group is majority-owned by the Dubai Group and known for innovative residential projects in Singapore, such as the luxury Hamilton Scotts high-rise condominium that features special elevators that carry cars up to the residential units.

The group is currently looking for opportunities to enter Singapore’s mid-market residential segment in city-fringe areas, said Ms Ong. It has set aside some $350 million for international business opportunities in the next 12 to 18 months.

KOP is also in talks with local travel agencies to begin offering customised cruises to destinations in Asia.

Reignwood Group chairman Chanchai Ruayrungruang said: ‘We are confident that this venture will be successful in meeting considerable pent-up demand for the nautical lifestyle here.’

Ms Ong added: ‘We have got a very positive response so far. We believe that yachts will become a mainstream experience in Singapore soon.